2024 Consumer Trends: Small Changes Make a Big Difference 

Consumer Trends Impacting Retail in 2024

Another year has passed! And what a year it was. From Rihanna announcing her second pregnancy in the middle of her Super Bowl performance to a new Rolling Stones album nearly 60 years after their debut record, 2023 had it all.

In between, we’ve had so much to digest. No one would have had ‘Gwyneth Paltrow mic dropping a retired optometrist over a skiing collision’ on their 2023 bingo card. Jack Black sang about Peaches, King Charles III was coronated, generative AI convinced the world that Pope Francis struts around the Vatican in a white puffer jacket, and Barbenheimer took the film world by storm.

Finally, we can’t finish reminiscing about 2023 without mentioning Time’s Person of the Year, Taylor Swift. From topping charts and the box office to dating Travis Kelce and seeing the year out in a photoshoot with her cat; there wasn’t really much Taylor Swift didn’t do this year.

As we step into 2024, pop culture will undoubtedly throw another few curveballs to the world over the next 12 months. However, in a slightly more predictable space, shopping habits continue to evolve in response to current affairs – and the retail industry is steadily preparing, ready to cater to their customers’ ever-changing demands.

In this blog, we’ve outlined 6 consumer and retail trends to watch in 2024. Let’s dive in.

Human Touch

2023 saw a boom in AI (Artificial Intelligence) from a consumer perspective. While the technology has been developing gradually in the tech world for years, generative AI brought it to the masses (remember Pope Francis’ jacket?). According to Survey Monkey’s AI in the Customer Experience report, 90% of consumers prefer to receive customer service from a human rather than a chatbot, with 61% claiming that humans better understand their needs than their technology counterparts.

As retailers look to introduce AI to their shop floor operations, consumers will still crave a more human shopping experience – specific human skills and emotions that can’t be replicated by a computer.

Nothing beats a welcoming smile when being greeted in-store. Technology deployment is important in retail, but not as important as the people that bring the business to life. 

A New Spin on Value

Today’s consumer wants quality – but in new ways. Traditionally, the term might have referred directly to reliable, high-quality products themselves. However, in today’s environment, ‘quality’ extends beyond the product itself.

Consumers today see quality in convenience and flexibility – and anything that can make their life easier. In fact, Numerator finds that a whopping 82% of shoppers believe that convenience is either extremely or very important for them. For a retailer, this might be a case of providing a range of fulfillment options, such as same-day delivery or Buy Online, Pick-up In-store (BOPIS). It could also be as simple as providing a seamless in-store experience – from greeting through to the checkout.

Interestingly, even in the current economic climate, consumers seek, and are willing to pay for this additional ‘quality’ in online shopping and physical stores. They crave value at every opportunity.

Promotions Galore

The ‘quality’ conversation introduces our next trend: promotions, offers and discounts. It is no secret that we are in a cost of living crisis. While shoppers might be willing to pay for better quality and convenience, they are still shrewd with their purchases, and have a higher appetite than ever for a great deal.

Outside of Boxing Day Sales, Amazon Prime Day and Black Friday, retailers in 2024 should pay specific attention to the promotions they run. Running promotions en-masse might seem effective, but in order to reach customers on a personal level, deliver value through interactions and develop strong relationships. Undoubtedly, curating offers on an individual basis, tailored to each shopper and their preferences, can go a long way to driving retained business.

Still Keen for Green

A popular trend within retail for a few years now, sustainability remains high on the agenda for consumers. According to PwC, 70% of consumers are willing to pay more for sustainability sources goods, making this characteristic crucial when making purchasing decisions. 2023 saw fast fashion come under fire on a number of occasions, and with e-commerce initiatives gaining momentum with both consumers and retail brands alike, work is clearly being done across the industry for businesses to become more environmentally friendly.

With that said, it isn’t enough to simply tweak a few practices on the shop floor and fool customers. The supply chain is equally – if not, more so – important in improving sustainable practices, and consumers recognize the value in minimizing waste and optimizing both manufacturing and transport practices.

Social Commerce

Social commerce entails utilizing social media platforms as channels for both customer acquisition and sales within digital commerce strategies. Social commerce is a branch of e-commerce that, despite growing hype for its use over the last few years, hasn’t really taken off in the West yet. Taking inspiration from Asia, where WeChat’s retail success acts as the perfect case study for social commerce’s value in society, a number of brands are beginning to find ways to roll out a social commerce offering.

The popularity of apps such as TikTok, Instagram and WhatsApp, combined with today’s streamlined mobile payments, is now beginning to turn the wheels of social commerce for several retail brands. The market size of the up and coming branch of e-commerce currently stood at approximately $2.4 trillion according to Global Data. Of course, eastern influence carries much of the load on that number, but as wider adoption across the planet continues, the market is expected to reach $11.1 trillion by 2030. Keep an eye out for its potential boom in 2024.

Into the Future

It isn’t news that consumer demands dictate the tempo of the retail industry. As consumers expectations grow, retailers must keep in-tune with any implementations that affect the supply chain, marketing strategies, technology, and other relevant areas. Today’s customer wants to feel special, and they crave simplicity. Whether adding a personal touch in-store, providing a range of fulfillment options for their convenience, or simply demonstrating eco-friendly credentials – the little things can make all the difference in 2024.